Perth

41 St Georges Terrace fuels resurgence in strata office sales

Five whole-floor strata suites offered to market from $1.695 to $ 2.95 million

PERTH, 1 June 2012 – The critical shortage of CBD office accommodation and record levels of demand from tenants is underpinning a surge in CBD strata sales activity, says Jones Lang LaSalle.

To satisfy demand from investors and owner-occupiers property investment company Sierra Leyton is offering for sale the only full floor strata offices currently available on St Georges Terrace.

A limited release of five floors in the newly refurbished 41 St Georges Terrace are now for sale with 3 available vacant for owner occupiers and the remaining 2 leased and therefore suitable for investors.

Vacant accommodation ranges from 308sqm to 619sqm, each has dedicated secure parking, with some floors benefiting from existing, high quality partitioning. Prices start at $1.695m and are regarded as entry level into the CBD market and affordable to a large cross-section of buyers.

“This is a unique opportunity offered at a critical point in the market,” said Jones Lang LaSalle Managing Director, John Williams.

“The prevailing supply and demand equation in the CBD is at a point where strong rental growth has occurred and is likely to continue. There is recent evidence of A-grade office buildings achieving annual rents in excess of $900sqm net and B-grade rents at $700 sqm.

“Whilst these are isolated instances today, given rents have increased by 19.3 per cent over the last 12 months and that we now have a 2 per cent vacancy rate in the CBD it is likely these rental levels will be the accepted norm very shortly.

“The offering of vacant floors at 41 St Georges Terrace is therefore timely. Owner occupiers have the opportunity to not only secure a position on St Georges Terrace but most importantly control their occupancy costs in a rising market. With low interest rates and increasing rents, owning is likely to be a more economic alternative to renting in the Perth CBD for the foreseeable future,” he added.

“Buying rather than renting is becoming increasingly popular with self-managed super funds and we anticipate that this offering will be very popular amongst these groups, especially at this price point."

Jones Lang LaSalle Sales Negotiator Andrew Langsford said that the property had benefited from a substantial refurbishment program including the installation of new floor-by-floor air conditioning lifts and building security systems.

“In addition the long term capital value would be further enhanced by the building’s proximity to two of the city’s largest redevelopment projects."

“The first is the $440 million Elizabeth Quay project which is within 200 metres and the second, situated opposite, is the former State Treasury building which will undergo a $580 million construction and refurbishment program to house the Department of Justice and an Aman Hotel” he said.